PayPal Cashback Mastercard® Review: A great fit for PayPal users
The card could have great long-term value, but only if you take advantage of its PayPal bonus category.
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Snapshot
3.3
Bottom line
This card has limited features, but its solid PayPal and flat-rate rewards could make it very lucrative for digital wallet users.
PayPal Cashback Mastercard®
Intro offer
N/A
Rewards rate
1.5% - 3%
Annual fee
$0
Regular APR
Variable purchase APRs are 19.24%, 30.99%, or 33.99%. The APRs are accurate as of March 1 , 2025.
4.2
Cardholder rating
Extra perks
Meets needs
Online tools
Customer service
3.3
Bankrate score
Reward Details
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PayPal Cashback Mastercard® overview
The PayPal Cashback Mastercard® could be a great choice if you regularly use PayPal or if you simply need a solid no-annual-fee rewards card. It offers a solid, unlimited 1.5 percent cash back on all purchases and 3 percent back on PayPal purchases, making this card one of the few flat-rate cards that go the extra mile by also carrying one or more bonus categories.
Unfortunately, it’s not always easy to plan where you can earn 3 percent cash back, as not all stores let you make purchases through your PayPal account. The card also lacks a sign-up bonus, intro APR offers and other benefits that give the best cash back cards more long-term value. The higher end of the possible ongoing APR can also be quite high compared to the current average credit card interest rates.
If these factors aren’t deal-breakers, the PayPal Cashback Mastercard could be a great general-purpose cash back card, especially if you’re a frequent online shopper or digital wallet user.
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Rewards
- 3 percent cash back on purchases made through your PayPal account (online or in-store)
- 1.5 percent cash back on all other purchases
Expert Appraisal: Typical
See our expert analysis -
Welcome offer
- This card doesn’t have a welcome offer.
Expert Appraisal: Weak
See our expert analysis -
Rates and fees
- Annual fee: $0
- Ongoing APR: Variable purchase APRs are 19.24%, 30.99%, or 33.99%. The APRs are accurate as of March 1 , 2025.
- Cash advance fee: Either $10 or 5 percent of the amount of each cash advance
- Foreign transaction fee: 3 percent
- Late payment fee: Up to $40
- Returned payment fee: Up to $41
Expert Appraisal: Unimpressive
See our expert analysis -
Other cardholder perks
- Zero Liability Protection
- Lost and stolen card reporting
- Emergency card replacement
Expert Appraisal: Unimpressive
See our expert analysis
PayPal Cashback Mastercard pros and cons
Pros
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PayPal integration makes this a great card for people who use PayPal and want to manage their card, payments and cashback rewards all in one place.
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The card charges no annual fee, making pairing with other rewards cards affordable.
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The card charges no annual fee, making pairing with other rewards cards affordable.
Cons
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The card doesn’t have sign-up or intro offers, limiting its initial value compared to other cash back cards.
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Not all physical retailers accept PayPal, so you may be unable to earn 3 percent cash back at several physical stores.
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This card includes very few perks compared to competing cash back cards, lacking annual credits, travel insurance and rideshare or delivery service benefits.
First-year value vs. ongoing value
The PayPal Cashback Mastercard offers a solid rewards rate on general purchases and a top-notch rate on online or in-store shopping through PayPal. This rare combination gives the card good long-term value — as long as you can take advantage of the PayPal bonus category. However, there isn't a welcome offer or perks of monetary value that will change the stagnancy of your average yearly rewards earnings year after year.
| First-year value | Ongoing value | |
|---|---|---|
| Welcome offer | – | – |
| Yearly rewards | +$318 | +$318 |
| Perks (of monetary value) | – | – |
| Annual fee | $0 | $0 |
| Total value | $318 | $318 |
Why you might want the PayPal Cashback Mastercard
The PayPal Cashback Mastercard is great for earning extra cash back on eligible PayPal purchases. You earn boosted cash back rewards for purchases using PayPal, solid flat-rate cash back rewards for all other purchases and the card integrates seamlessly into a digital wallet.
Rewards: Boosted cash back for PayPal purchases
In addition to its 1.5 percent flat cash back rate on general purchases, the PayPal Cashback Mastercard offers an impressive bonus rate of 3 percent cash back on PayPal purchases, including at stores that let you pay using the PayPal app, the physical card or a virtual copy of the card in your digital wallet. A powerful combination of rewards rates like this can help you earn consistent cash back on nearly all your purchases.
Most flat-rate cash back rewards cards only offer a flat rate on general purchases, with no additional bonus categories. By pairing a solid 1.5 percent on general purchases with 3 percent cash back on PayPal purchases, the PayPal Cashback Mastercard combines the best features of flat-rate and bonus-category cash back cards.
However, to earn 3 percent cash back, you have to make purchases through your PayPal account, which you can do online or in-store as long as the merchant accepts PayPal as a form of payment. If the store doesn’t accept PayPal, you’ll earn 1.5 percent cash back.
Luckily, several popular brands accept PayPal, which means you’ll have enough flexibility to maximize this card’s boosted rate just about anywhere. It lists the merchants that accept it as a payment method on its website, including a comprehensive list of popular fashion, travel, entertainment, electronics and athletic brands.
Rates and fees: No annual fee to offset
The PayPal Cashback Mastercard stands toe-to-toe with other top cash back credit cards since it costs nothing to hold, and it’s one of the few competitors without a spending cap on its highest rewards category.
It has standard rates and fees, including a 3 percent foreign transaction fee, so it’s probably not the best card to take on international trips but it comes in handy for everyday shopping and online purchases for retailers based in the U.S. However, do your best not to carry a balance as the Paypal Cashback Mastercard’s potential APR of up to 34.24 percent is quite high.
PayPal integration: Simple and secure account management
This card provides added convenience and functionality by integrating with the PayPal app. You can manage your card, PayPal account, cash back, rewards redemptions and mobile wallet from within the PayPal app, giving you a one-stop location for managing your money.
Not only can seamless in-app integration protect you from credit card fraud with PayPal’s security features, like encryption and fraud detection, but you can use the PayPal app to view your card account details and PayPal activity in one place. Plus, you can use the PayPal app to make purchases using your PayPal Cashback Mastercard, meaning you won’t need to enter card details every time you make an online purchase.
To redeem your rewards, you just need to select your cash back balance and choose a redemption method. You can redeem cash back rewards for PayPal purchases, a direct deposit to your bank account or as a statement credit. Redeeming cash back for PayPal purchases can be more convenient than standard credit card rewards, especially if you’re a frequent PayPal user.
Why you might want a different cash back card
If you don’t use PayPal, it’ll be difficult to get much value out of this card compared to other cash back cards. And even if you are a PayPal user, this card lacks some outstanding features and many of the perks and benefits of rival cards.
No welcome offer: Low first-year value compared to other cards
If you were hoping to get a headstart on building a cash back balance with your next credit card, you may be disappointed to learn that the PayPal Cashback Mastercard doesn’t have a welcome offer. Some of the best sign-up bonuses offer new cardholders $50 to $250 in cash back rewards for meeting a minimum spending requirement. Although competing card offers require spending $500 to $1,500 within the first three to six months, the hefty cash back jumpstart is often worth it.
If you want a similar card with a welcome offer, consider another rewards or cash back card that earns rewards on online shopping. However, if PayPal makes up a majority of your budget, you might be better off earning a regular 3 percent back on PayPal purchases than a one-time $200 cash back bonus.
Intro APR: No offers to help pay off purchases
The PayPal Cashback Mastercard doesn’t have an intro APR offer for either new purchases or balance transfers, making it a poor choice if you want to transfer a balance or finance a large, upcoming purchase.
Lacking intro APR offers doesn’t necessarily mean it’s a bad credit card, but intro offers can bring peace of mind and convenience if you’re new to credit cards or recovering from debt. And many top cash back cards offer some sort of intro APR period for purchases or balance transfers.
Perks: Fewer benefits than some rivals
The PayPal Cashback Mastercard carries the minimum network benefits for cardholders. It focuses on protections like zero fraud liability protection for unauthorized purchases, lost and stolen card reporting and emergency card replacement. These perks can make handling emergencies easier, but other cards offer stronger benefits for their cardholders. For instance, some no-annual-fee cash back cards have complimentary rideshare or delivery service memberships and bonus statement credits available for cardholders, adding to the card's long-term value.
We tried it: Here's what our experts say
The PayPal Cashback Mastercard might be the most appreciated by frequent online customers. As noted by Bankrate senior credit cards editor Nouri Zarrugh, although the flat cash back rate has decreased since applying for the card, it continues to offer better value than other cards' rewards rates for online shopping.
Bankrate staff insights
Most online stores accept PayPal, and this card has made it easy to earn rewards on nearly everything I buy online. When I applied, the card also offered 2 percent back on all other purchases in addition to the PayPal rewards rate, which gave it an edge over other flat-rate cash back cards. That flat rate has since been nerfed to just 1.5 percent, but most cards that reward online shopping only offer a base rate of 1 percent back, so the PayPal Mastercard can still offer great value as a standalone option.
Nouri Zarrugh, senior credit cards editor
Best cards to pair with the PayPal Cashback Mastercard
Since the PayPal Cashback card already offers a decent flat cash back rate and the chance to earn boosted rewards for PayPal purchases, consider pairing it with a rotating category card that has outstanding rewards rates in other categories.
How the PayPal Cashback Mastercard compares to other cash back cards
Unless you need time to pay off a balance, the PayPal Cashback Mastercard is a low-cost card with an excellent cash back rate. But considering the card’s limited features and bonus category roster, other cash back cards might be a better fit.
Annual fee
Intro offer
Rewards rate
Earn 3% cash back on PayPal purchases. Earn 1.5% on all other purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Rewards rate
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Rewards rate
Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Earn 1% cash back on all other eligible purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Is the PayPal Cashback Mastercard card right for me?
If you use PayPal whenever you shop online (and even offline), this card can be incredibly rewarding and convenient. It could be right for you if:
- PayPal is your go-to for purchases both online and in-person.
- You shop frequently with merchants that accept PayPal (ex. Walmart, Best Buy, Home Depot, etc.).
- You want to earn a solid flat rate everywhere and a generous boosted rate for purchases made using PayPal.
- If you're a minimalist spender who only wants to hold one card and use one payment method for every purchase.
Alternative picks
If you aren't a PayPal user, squeezing stellar value from this card might be challenging. You may be better off with a different rewards card, instead, with more flexible perks.
The information about the Chase Freedom Flex℠ has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
Frequently asked questions
How we rated this card
We rate credit cards using a proprietary card scoring system that ranks each card’s estimated average rewards rate, estimated annual earnings, welcome bonus value, APR, fees, perks and more against those of other cards in its primary category.
Each card feature is assigned a weighting based on how important it is to people looking for a card in a given category. These features are then scored based on how they rank relative to the features on other cards in the category. Based on these calculations, each card receives an overall rating of 1-5 stars (with 5 being the highest possible score and 1 being the lowest).
We analyzed over 150 of the most popular rewards and cash back cards to determine where each stacked up based on their value, cost, benefits and more. Here are some of the key factors that influenced this card’s overall score and how the score influenced our review:
What cardholders think
PayPal Cashback Mastercard®
In May 2024 and March 2025, Bankrate collaborated with a third-party vendor to survey 8170 cardholders nationwide. Bankrate and our vendor collected, averaged and presented website analytics and cardholder responses to six questions on a 5-point scale. Responses are based on individual cardholder's product details, and therefore cannot be verified for accuracy. Users received an incentive for their feedback. User ratings are unedited and have not been reviewed or approved by credit card issuers, nor do these ratings reflect Bankrate's own reviews of these cards.
Community Reviews
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
